Cedar Realty Trust Reports Second Quarter 2014 Results

06 Aug, 2014, 16:01 ET from Cedar Realty Trust, Inc.

PORT WASHINGTON, N.Y., Aug. 6, 2014 /PRNewswire/ -- Cedar Realty Trust, Inc. (NYSE: CDR) today reported results for the second quarter ended June 30, 2014.

Highlights

  • Operating funds from operations (FFO) of $0.14 per diluted share
  • Same-property net operating income (NOI) increased 2.0%
  • Signed 61 new and renewal leases for 380,000 square feet
  • Comparable cash-basis lease spreads of 8.9%
  • Total portfolio 93.3% leased and same-property portfolio 93.8% leased at quarter-end
  • Raised low end of 2014 Operating FFO guidance to a new range of $0.52 to $0.54 per diluted share

"In addition to our consistent operating results, we are pleased with the improving quality of our shopping center portfolio," commented Bruce Schanzer, President and CEO. "As a result of our capital recycling efforts, we have disposed of four properties for $65.3 million with an average three-mile population density of 22,000 and acquired a property for $92.3 million with a three-mile population density of 325,000. These ongoing portfolio improvements will enable us to drive increases in shareholder value."

Financial Results

Operating FFO for second quarter 2014 was $11.2 million or $0.14 per diluted share, compared to $9.0 million or $0.12 per diluted share for the same period in 2013. Operating FFO for six months ended June 30, 2014 was $21.4 million or $0.27 per diluted share, compared to $17.7 million or $0.24 per diluted share for the same period in 2013.

Net income attributable to common shareholders for second quarter 2014 was $13.5 million or $0.17 per diluted share, compared to net income of $977,000 or $0.01 per diluted share for the same period in 2013. Net income attributable to common shareholders for six months ended June 30, 2014 was $11.6 million or $0.15 per diluted share, compared to net income of $65,000 or $0.00 per diluted share for the same period in 2013.

Portfolio Results

Same-property NOI increased 2.0% for second quarter 2014 compared to the same period in 2013. This figure includes the impact of re-leasing the dark anchor at Oakland Commons with a Walmart Neighborhood Market. Same-property NOI growth, excluding the re-leasing impact was 1.0%.

During second quarter 2014, the Company signed 61 leases for 380,000 square feet. On a comparable space basis, the Company leased 355,000 square feet at a positive lease spread of 8.9% on a cash basis (new leases increased 8.0% and renewals increased 9.0%).

The Company continues to make progress in its capital recycling efforts, directed towards upgrading the quality of its shopping center portfolio. On March 21, 2014, the Company completed the $92.3 million acquisition of Quartermaster Plaza, with 456,000 leasable square feet, a present average base rent of $13.90 per square foot, and a population density of approximately 325,000 people within a three-mile radius. Further, commencing in the second quarter of 2014 through the recent sale of Carbondale Plaza on July 18, 2014, the Company has sold four properties for an aggregate of $65.3 million, having an average of 138,000 leasable square feet per property, an average base rent of $9.85 per square foot, and an average population density of approximately 22,000 people within a three-mile radius.

The Company's total portfolio, excluding properties held for sale, was 93.3% leased at June 30, 2014, compared to 93.6% at December 31, 2013 and 92.7% at June 30, 2013. The Company's same-property portfolio was 93.8% leased at June 30, 2014, compared to 94.3% at December 31, 2013 and 93.8% at June 30, 2013.

Balance Sheet

As of June 30, 2014, the Company has $165.8 million available under its revolving credit facility and reported net debt to earnings before interest, taxes, depreciation and amortization (EBITDA) of 7.7 times. Additionally, thus far in 2014, the Company has repaid approximately $135 million of secured mortgage debt with proceeds from the Company's previously-announced $150 million in unsecured term loans, thereby improving balance sheet flexibility.

2014 Guidance

The Company raised the low end of its 2014 Operating FFO guidance to a new range of $0.52 to $0.54 per diluted share from the previous range of $0.51 to $0.54 per diluted share.

Quarterly Dividends

As previously announced, the Company will pay a cash dividend of $0.05 per share on the Company's common stock and $0.453125 per share on the Company's 7.25% Series B Cumulative Redeemable Preferred Stock on August 20, 2014 to shareholders of record as of the close of business on August 8, 2014.

Funds From Operations Reconciliation

The Company reports FFO in accordance with the standards established by the National Association of Real Estate Investment Trusts (NAREIT). FFO is a widely-recognized non-GAAP financial measure for REITs that the Company believes, when considered with financial statements prepared in accordance with GAAP, is useful to investors in understanding financial performance and providing a relevant basis for comparison among REITs. The Company's computation of FFO, as detailed in the attached schedule, is in accordance with NAREIT's pronouncements. The Company also presents "Operating FFO", which excludes certain items that are not indicative of the results provided by the Company's consolidated portfolio and that affect the comparability of the Company's period-over-period performance, as also detailed in the attached schedule.

Supplemental Financial Information Package

The Company has issued "Supplemental Financial Information" for the period ended June 30, 2014. Such information has been filed today as an exhibit to Form 8-K and will also be available on the Company's website at www.cedarrealtytrust.com.

Investor Conference Call

The Company will host a conference call today, August 6, 2014, at 5:00 PM (ET) to discuss the second quarter results. The conference call can be accessed by dialing (877) 705-6003 or (1) (201) 493-6725 for international participants. A live webcast of the conference call will be available online on the Company's website at www.cedarrealtytrust.com.  

A replay of the call will be available from 8:00 PM (ET) on August 6, 2014, until midnight (ET) on August 20, 2014. The replay dial-in numbers are (877) 870-5176 or (1) (858) 384-5517 for international callers. Please use passcode 13583882 for the telephonic replay. A replay of the Company's webcast will be available on the Company's website for a limited time.

About Cedar Realty Trust

Cedar Realty Trust, Inc. is a fully-integrated real estate investment trust which focuses on the ownership and operation of primarily grocery-anchored shopping centers straddling the Washington DC to Boston corridor. The Company's portfolio (excluding properties treated as "held for sale") is comprised of 60 properties, with approximately 9.4 million square feet of gross leasable area.

For additional financial and descriptive information on the Company, its operations and its portfolio, please refer to the Company's website at www.cedarrealtytrust.com.

Forward-Looking Statements

Statements made in this press release that are not strictly historical are "forward-looking" statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance and outcomes to differ materially from those expressed or implied in forward-looking statements. Please refer to the documents filed by Cedar Realty Trust, Inc. with the SEC, specifically the Company's Annual Report on Form 10-K for the year ended December 31, 2013, which identifies important risk factors that could cause actual results to differ from those contained in forward-looking statements.

 

CEDAR REALTY TRUST, INC.

Condensed Consolidated Balance Sheets

June 30

December 31

2014

2013

(unaudited)

ASSETS

Real estate

Land

$                      313,774,000

$                      276,747,000

Buildings and improvements

1,160,294,000

1,101,084,000

1,474,068,000

1,377,831,000

Less accumulated depreciation

(253,558,000)

(236,784,000)

Real estate, net

1,220,510,000

1,141,047,000

Real estate held for sale/conveyance 

51,607,000

129,945,000

Cash and cash equivalents

4,037,000

3,973,000

Restricted cash

10,297,000

11,063,000

Receivables

19,581,000

18,100,000

Other assets and deferred charges, net

28,488,000

27,798,000

TOTAL ASSETS

$                   1,334,520,000

$                   1,331,926,000

LIABILITIES AND EQUITY

Mortgage loans payable

$                      425,245,000

$                      509,308,000

Mortgage loans payable - real estate held for sale/conveyance 

6,618,000

29,832,000

Unsecured revolving credit facility

76,500,000

153,500,000

Unsecured term loans

200,000,000

50,000,000

Accounts payable and accrued liabilities

19,277,000

22,666,000

Unamortized intangible lease liabilities

25,911,000

25,509,000

Unamortized intangible lease liabilities - real estate held for sale/conveyance

1,092,000

5,463,000

Total liabilities

754,643,000

796,278,000

Noncontrolling interest - limited partners' mezzanine OP Units

409,000

414,000

Commitments and contingencies

-

-

Equity:

Cedar Realty Trust, Inc. shareholders' equity:

Preferred stock 

190,661,000

190,661,000

Common stock and other shareholders' equity

382,525,000

337,016,000

Total Cedar Realty Trust, Inc. shareholders' equity

573,186,000

527,677,000

Noncontrolling interests:

Minority interests in consolidated joint ventures

3,329,000

4,202,000

Limited partners' OP Units

2,953,000

3,355,000

Total noncontrolling interests

6,282,000

7,557,000

Total equity

579,468,000

535,234,000

TOTAL LIABILITIES AND EQUITY

$                   1,334,520,000

$                   1,331,926,000

 

CEDAR REALTY TRUST, INC.

Condensed Consolidated Statements of Operations

(unaudited)

Three months ended June 30,

Six months ended June 30,

2014

2013

2014

2013

REVENUES

Rents  

$                  29,633,000

$                  27,295,000

$                  58,005,000

$                  54,624,000

Expense recoveries

7,255,000

6,463,000

16,175,000

14,470,000

Other

181,000

163,000

236,000

386,000

Total revenues

37,069,000

33,921,000

74,416,000

69,480,000

PROPERTY OPERATING EXPENSES

Operating, maintenance and management

6,221,000

5,354,000

14,247,000

12,147,000

Real estate and other property-related taxes

4,602,000

4,394,000

9,109,000

8,860,000

Total property operating expenses

10,823,000

9,748,000

23,356,000

21,007,000

PROPERTY OPERATING INCOME

26,246,000

24,173,000

51,060,000

48,473,000

OTHER EXPENSES

General and administrative

3,780,000

3,456,000

7,304,000

6,726,000

Employee termination costs

-

-

-

106,000

Acquisition costs 

-

-

2,870,000

-

Impairment charges/(reversal)

1,725,000

-

1,807,000

(1,100,000)

Depreciation and amortization

9,693,000

9,452,000

19,141,000

18,953,000

Total other expenses

15,198,000

12,908,000

31,122,000

24,685,000

OPERATING INCOME

11,048,000

11,265,000

19,938,000

23,788,000

NON-OPERATING INCOME AND EXPENSES

Interest expense

(8,124,000)

(8,925,000)

(16,182,000)

(17,812,000)

Early extinguishment of debt costs

(62,000)

(21,000)

(163,000)

(106,000)

Gain on sales

3,810,000

-

3,810,000

346,000

Total non-operating income and expense

(4,376,000)

(8,946,000)

(12,535,000)

(17,572,000)

INCOME FROM CONTINUING OPERATIONS

6,672,000

2,319,000

7,403,000

6,216,000

DISCONTINUED OPERATIONS

Income from operations

751,000

869,000

1,794,000

824,000

Impairment reversals, net

183,000

-

119,000

-

Gain on extinguishment of debt obligations

1,423,000

1,298,000

1,423,000

1,298,000

Gain on sales 

7,963,000

-

7,963,000

-

Total income from discontinued operations

10,320,000

2,167,000

11,299,000

2,122,000

NET INCOME

16,992,000

4,486,000

18,702,000

8,338,000

Less, net loss (income) attributable to noncontrolling interests:

Minority interests in consolidated joint ventures

147,000

97,000

213,000

103,000

Limited partners' interest in Operating Partnership

(79,000)

(4,000)

(68,000)

(1,000)

Total net loss (income) attributable to noncontrolling interests

68,000

93,000

145,000

102,000

NET INCOME ATTRIBUTABLE TO CEDAR REALTY TRUST, INC.

17,060,000

4,579,000

18,847,000

8,440,000

Preferred stock dividends

(3,602,000)

(3,602,000)

(7,204,000)

(7,209,000)

Preferred stock redemption costs

-

-

-

(1,166,000)

NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS

$                  13,458,000

$                       977,000

$                  11,643,000

$                         65,000

PER COMMON SHARE ATTRIBUTABLE TO COMMON SHAREHOLDERS (BASIC AND DILUTED)

Continuing operations

$                             0.03

$                            (0.02)

$                            (0.00)

$                            (0.03)

Discontinued operations

0.14

0.03

0.15

0.03

$                             0.17

$                             0.01

$                             0.15

$                            (0.00)

Weighted average number of common shares - basic and diluted

75,531,000

68,345,000

75,076,000

68,342,000

 

CEDAR REALTY TRUST, INC.

Reconciliation of Net Income Attributable to Common Shareholders to Funds From Operations

and Operating Funds From Operations

Three months ended June 30,

Six months ended June 30,

2014

2013

2014

2013

Net income attributable to common shareholders

$        13,458,000

$              977,000

$        11,643,000

$                65,000

Real estate depreciation and amortization

9,609,000

9,657,000

18,970,000

19,386,000

Limited partners' interest

79,000

4,000

68,000

1,000

Impairment charges/(reversal)

1,542,000

-

1,688,000

(1,100,000)

Gain on sales 

(11,773,000)

-

(11,773,000)

(346,000)

Consolidated minority interests:

Share of (loss) 

(147,000)

(97,000)

(213,000)

(103,000)

Share of FFO

(226,000)

(278,000)

(533,000)

(695,000)

Funds From Operations ("FFO")

12,542,000

10,263,000

19,850,000

17,208,000

Adjustments for items affecting comparability:

Acquisition costs 

-

-

2,870,000

-

Early extinguishment of debt costs, net

62,000

21,000

150,000

543,000

Gain on extinguishment of debt obligations

(1,423,000)

(1,298,000)

(1,423,000)

(1,298,000)

Employee termination costs

-

-

-

106,000

Preferred stock redemption costs

-

-

-

1,166,000

Operating Funds From Operations ("Operating FFO")

$        11,181,000

$          8,986,000

$          21,447,000

$         17,725,000

FFO per diluted share:

$                   0.16

$                    0.14

$                     0.25

$                    0.24

Operating FFO per diluted share:

$                   0.14

$                    0.12

$                     0.27

$                    0.24

Weighted average number of diluted common shares:

Common shares

79,223,000

72,301,000

78,756,000

72,122,000

OP Units

465,000

281,000

472,000

281,000

79,688,000

72,582,000

79,228,000

72,403,000

 

SOURCE Cedar Realty Trust, Inc.



RELATED LINKS

http://www.cedarrealtytrust.com